Asked by Jashea Migliori on May 02, 2024
Verified
Anders Inc.uses the weighted-average method in its process costing system.The following data concern the operations of the company's first processing department for a recent month. 
Required:
a.Determine the equivalent units of production.
b.Determine the costs per equivalent unit.
c.Determine the cost of ending work in process inventory.
d.Determine the cost of the units transferred to the next department.
Weighted-Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period, weighted by the number of units.
Costs Per Equivalent Unit
A calculation used in process costing that distributes costs evenly across units produced, factoring in various stages of completion.
- Evaluate the equivalent production units for materials and conversion charges using the weighted-average process.
- Estimate the cost per equivalent unit for both materials and conversion expenditures.
- Evaluate the cost related to completing work in process inventory and the cost associated with units transferred out by applying the weighted-average method.
Verified Answer
JG
Learning Objectives
- Evaluate the equivalent production units for materials and conversion charges using the weighted-average process.
- Estimate the cost per equivalent unit for both materials and conversion expenditures.
- Evaluate the cost related to completing work in process inventory and the cost associated with units transferred out by applying the weighted-average method.